The European Chamber of Commerce in Vietnam (EuroCham) officially released its Q2 2025 edition of the Business Confidence Index (BCI) on June 30, revealing an evolving but still resilient outlook among European businesses operating in Vietnam.

Accordingly, the BCI eased slightly to 61.1 points amidst global uncertainty, but the overarching message remains one of tempered optimism. Despite turbulence in international markets and temporary bottlenecks in domestic reforms, European businesses maintain confidence in Vietnam’s long-term growth trajectory.

EuroCham Chairman Bruno Jaspaert shared that the European businesses in Vietnam still remain confident in the investment climate. “Especially, around three in every four  (72 per cent) of surveyed business leaders would recommend Vietnam as an investment destination, and this has been a consistent trend across recent BCI reports. That level of consistency speaks volumes,”  Mr. Jaspaert noted.

This steady confidence stands in contrast to the growing turbulence in global markets. As international trade tensions mount and supply chains remain under pressure, European businesses in Vietnam are showing remarkable resilience.

Although concerns around sourcing strategies and supply chain resilience are rising, only 15 per cent of business leaders surveyed reported net negative financial impacts, including penalties, cancelled orders, or price renegotiations. Notably, 70 per cent said they had experienced no measurable impact, and 5 per cent even reported net gains thus far.

Moreover, a solid 78 per cent of respondents (up 7 percentage points from Q1) expect improved business conditions over the next five years. This growing optimism signals continued belief in Vietnam’s structural growth story, even as the near-term picture remains clouded.

However, the report also highlights persistent challenges. Many European companies continue to face burdensome administrative procedures in Vietnam. Issues such as complex work permit requirements for foreign employees, fire safety regulations, import-export documentation, land ownership rules remain significant hurdles, etc.

Mr. Jaspaert said that these overlapping administrative constraints not only delay business operations but also complicate long-term planning and investment decisions. They undermine the competitiveness of Vietnam at a time when it is competing regionally for high-quality FDI.

“Therefore, addressing these concerns is not just about streamlining paperwork, it is about delivering regulatory predictability, institutional accountability, and policy transparency,” Mr. Jaspaert suggested.